Posted September 3, 2020

CD&R to acquire Epicor

Leading private equity group plans to increased investment in Epicor's growth.

Clayton, Dubilier & Rice plans to acquire Epicor, a global provider of industry-specific enterprise software to industrial-focused sectors, from global investment firm KKR.

Over the past four years under KKR's ownership, Epicor's executive team, led by CEO Steve Murphy, has driven growth through a combination of organic investments and strategic acquisitions. A series of new product releases has led to a revenue mix comprising 73 percent recurring revenue, which includes an industry-leading SaaS business growth rate of 60 percent year-to-date. Epicor is well positioned for its exciting next chapter under CD&R ownership.

"This is an exciting day for the entire Epicor family—employees, customers, and partners alike – and validates the company's leadership position across markets we serve," said Murphy. "We welcome this new partnership with CD&R, which shares our vision for growing the company, and I thank KKR for a highly successful partnership these past few years. We are excited to work with CD&R to increase investment in our market-leading product portfolio and to enhance our ability to support an ever-increasing range of customer needs."

"Epicor's reputation for quality and performance, and its impressive portfolio of next-generation cloud products, position the company well to accelerate growth in the coming years," said Jeff Hawn, CD&R Operating Partner. "We look forward to partnering with the Epicor management team to further expand Epicor's product portfolio as well as make strategic acquisitions to meet customers' evolving digital transformation needs."

"We are excited to partner with Epicor and its talented management team to drive the business into a new phase of growth and profitability," said Rick Schnall, CD&R Co-President. "Our long-standing industrial end-market experience and growing enterprise software expertise aligns well with Epicor's value creation plan."

CD&R operating partner Jeff Hawn will serve as chairman of the Epicor board upon close of the transaction, expected later this year. Hawn has more than 20 years' experience across a range of senior executive roles in software and technology-related businesses, including serving as chairman and chief executive officer of Quest Software, Vertafore, and Attachmate.